Kel 


IMAGE  EVALUATION 
TEST  TARGET  (Mr-3) 


1.0 


I.! 


us 


B4 

110 


IL25  i  1.4 


■  2.0 

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1.6 


PhotografAiic 

Sciences 

Corporation 


23  WEST  MAIN  STCEZT 

WEBSTER,  N.Y.  14580 

(716)  S''2-4503 


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C!HM/ICMH 

Microfiche 

Series. 


CIHM/ICMH 
Collection  de 
microfiches. 


Canadian  Institute  for  Historicai  IVIicroreproductions  /  institut  Canadian  de  microreproductions  historiquee 


Technical  and  Bibliographic  Notes/Notes  techniques  et  bibliographiques 


T 


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□    Coloured  covers/ 
Couverture  de  couleur 

I      I    Covers  damaged/ 


D 
D 


D 


Couverture  endommagde 

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Couverture  restaur^  et/ou  pellicul6e 

Cover  title  missing/ 

Le  titre  de  couverture  manque 

Coloured  maps/ 

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Encre  de  couleur  (i.e.  autre  que  bieue  ou  noire) 


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Tight  binding  may  cause  shadows  or  distortion 
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qu'il  lui  a  6ti  possible  de  se  procurer.  Les  details 
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I      I    Coloured  pages/ 


D 


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Pages  damaged/ 
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I — I  Pages  damaged/ 

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ry\  Pages  discoloured,  stained  or  foxed/ 

I     I  Pages  detached/ 

["Tl  Showthrough/ 

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obscurcies  par  un  feuillet  d'errata,  une  pelure, 
etc.,  ont  M  filmdes  d  nouveau  de  fa9on  d 
obtenir  la  meiileure  image  possible. 


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tl 

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fl 

s 
o 


T 

s 
T 

V 

d 

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ri 
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Additional  comments:/ 
Commentaires  suppl^mentaires; 


Pages  after  16  lacking. 


This  item  is  filmed  at  the  reduction  ratio  checked  below/ 

Ce  document  est  fiim6  au  taux  de  reduction  indiqu6  ci-dessous. 

10X  14X  18X  22X 


26X 


30X 


7 

12X 


16X 


20X 


24X 


28X 


32X 


The  copy  filmed  here  has  bean  raproducad  thanks 
to  tha  ganaroslty  of: 

Douglas  Library 
Quaan's  Univarsity 


L'axamplaira  filmA  fut  raproduit  grica  k  la 
gAnArosltA  da: 

Douglas  Library 
Quaan's  Univarsity 


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beginning  with  the  front  cover  and  ending  on 
the  last  page  with  a  printed  or  Illustrated  Imprea- 
sion.  or  tha  back  cover  when  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  page  with  a  printed  or  llluatratad  Impres- 
sion, and  ending  on  the  last  page  with  a  printed 
or  illustrated  impression. 


Les  Images  suivantes  ont  4t6  raproduites  cvac  la 
plus  grand  soin,  compta  tenu  da  la  condition  at 
da  la  nettetA  de  rexemplaire  filmA,  et  en 
conformity  avec  les  conditions  du  contrat  de 
fiimage. 

Lea  exemplalres  orlginaux  dont  la  couvarture  en 
papier  eat  ImprimAe  sont  filmAs  en  commen9ant 
par  la  premier  plat  at  en  terminant  soit  par  la 
dernidre  page  qui  comporte  une  empreinta 
d'Impresslon  ou  d'lllustration,  soit  par  la  second 
plat,  salon  le  caa.  Tous  las  autras  axempiaires 
orlginaux  sont  filmAs  an  commen^ant  par  la 
premiere  page  qui  comporte  une  empreinta 
d'Impresslon  ou  d'iiiustratlon  at  an  terminant  par 
la  dernlAre  page  qui  comporte  une  telle 
empreinte. 


The  last  recorded  frame  on  each  microfiche 
shall  contain  the  symbol  ^^-  (meaning  "CON- 
TINUED"), or  the  symbol  y  (meaning  "END"), 
whichever  applies. 


Un  des  symboles  suivants  apparaitra  sur  la 
dernlAre  image  de  cheque  microfiche,  salon  le 
cas:  le  symbols  — ►  signifle  'A  SUIVRE ',  le 
symbols  V  signifle  "FIN". 


Maps,  plates,  charts,  etc.,  mp.y  be  filmed  et 
different  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  are  filmed 
beginning  in  the  upper  left  hand  corner,  left  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diegrams  illustrate  the 
method: 


Les  cartes,  planches,  tableaux,  etc.,  peuvent  dtre 
fiim^s  A  des  taux  de  rMuction  diff^rents. 
Lorsque  le  document  est  trop  grand  pour  6tre 
reproduit  en  un  seul  cilch6,  11  est  flim6  A  partir 
de  Tangle  supArieur  gauche,  de  gauche  d  droite. 
et  de  haut  en  bes,  en  prenant  le  nombre 
d'Images  nAcesssire.  Les  diagrammes  suivants 
lllustrant  la  mithoda. 


1 

2 

3 

1 

2 

3 

4 

5 

6 

40Tk  BBSS,  ) 

2a  SSeaston.       f 


HOUSE  OF  REPRESENTATIVES.       (  Ex.  Doc, 


(  Ex.  Doc. 
I   No.  240. 


TRADE  WITH  THE  BRITISH  PROVINCES. 


LETTER 


FROM 


THE  SECRETARY  OF  THE   TREASURY, 


IN  ANSWER* TO 


A  resolution  of  the  House  of  pie  1th  instant,  transmiUing  i^ormation  as  to  the 
trade  between  the  United  States  and  the  British  Jyoith  American  Provinces 
since  the  abrogation  of  the  reciprocity  treaty.     ^. 


March  31,  1868.— Referred  to  the  Committee  of  Ways  and  Means  and  ordered  to  be  printed. 


Treasury  Department, 

March  30,  1868. 

Sir:  The  following  resolution  adopted  by  the  House  of  Repreaentatives  on 
the  7th  of  February  last  was  duly  received :. 

Meso/ved,  That  the  Secretary  of  the  Treasury  be  directed  to  conanunicate  to 
this  house  a  statement  of  the  trade  between  the  United  States  and  the  Britiah 
North  American  Provinces,  now  confederated  under  the  name  of  Canada,  since 
the  abrogation  of  the  reciprocity  treaty,  and  showing  to  what  extent,  if  any, 
the  interests  of  the  Urited  States  have  been  affected  by  such  abrogation ;  also 
as  to  the  nature  of  the  arrangements  made  for  securing  to  American  citizens  the 
free  navigation  of  the  river  St.  Lawrence,  and  the  privilege  of  fishing  in  the 
waters  adjacent  to  Canada. 

As  the  time  necessary  to  prepare  a  proper  answer  to  the  resolution  cannot  be 
spared  by  any  competent  person  connected  with  this  department,  I  hand  you 
herewith  a  communication  prepared  by  Geo.  W.  Brega,  in  answer  to  said  reso- 
lution, which  seems  to  contain  the  information  which  has  been  called  for  by  the 
House  of  Rep'.esentatives. 

I  have  the  honor  to  be,  your  obedient  servant, 

H.  Mcculloch, 

Secretary  of  the  Treasury, 
Hon.  Schuyler  Colfax, 

Speaker  House  of  Representatives. 


S 


Washington,  JWarc/*  27,  1868. 

Sir:  I  beg  leave  to  submit  the  annexed  report  in  reply  to  the  following 
resolution  of  the  House  of  Representatives,  passed  February  7,  1868 : 

Re3olved,  That  the  Secretary  of  the  Treasury  be  directed  to  commHnicate  to  this  house  a 
statement  of  the  trade  between  the  United  States  and  the  British  North  American  jproVinces, 
now  confederated  under  the  name  of  Canada,  since  the  abrogation  of  the  reciprocity  treaty, 
and  showing  to  what  extent,  if  any,  the  interests  of  the  United  States  have  b^n  affected  by 
such  abrogation ;  also  as  to  the  nature  of  the  arrangements  made  for  securing  to  American 
citizens  the  free  navigation  of  the  river  St.  Lawrence^  and  the  privilege  of  ashing  in  the 
waters  adjacent  to  Canada.  c    'j,-.  julO  ^  * 


TRADE   WITH   THE   BRITISH   PROVINCES. 


This  resolution  embraces  not  merely  a  consideration  of  the  interchnnf^e  of  pro- 
ducts between  the  United  States  and  confederated  Canada,  but  also  extends  the 
inquiry  into  an  examination  of  other  questions  outside  of  reciprocal  trade  strictly 
speaking,  and  which  entered  largely  into  the  dittcussLon  of  the  subject  during 
the  negotiations  which  led  to  the  adoption  of  the  reciprocity  treaty  of  18.'54.     As 
a  mere  queHtion  of  an  exchange  of  products  of  the  soil,  American  8tater<m('n 
uniformly  contended  that  the  advantage  of  the  market  under  this  treaty  would 
benefit  the  Canadian  seller  to  a  greater  extent  than  it  would  us ;  but  it  was 
y    urged  that  as  tlie  actual  market  for  the  surplus  products  both   of  the  United 
States  and  of  Canada  must  be  beyond  our  territorial  limits,  the  advantage  was 
more  apparent  than  real.     In  other  words,  whilst  the  returns  might  show  that 
under  a  free  interchange  of  the  natural  products  of  the  soil,  Canada  would  export 
to  the  United  States  more  than  we  would  export  to  the  provinces,  yet  in  this 
iimatter  the  United  States  would  occupy  merely  the  position  of  a  factor,  obtain- 
iling  all  the  advantage  which  the  carrying  and  handling  of  the  produce  gave ; 
'Ithe  real  and  ultimate  purchaser  being  found  in  the  European  markets.     The 
advantage  to  Canada  it  was  said  would  be  found  in  the  capital  of  the  United 
States,  and  the  facility  of  selling  on  the  spot  and  at  all  seasons  of  the  year;  but 
that  the  markets  of  the  world,  and  not  the  lociil  demand,  would  regulate  the  price. 
\|The  advantage  to  the  United  States  was  mainly  to  be  had  from  the  profit  which 
II  our  capital  would  insure  in  the  handling  and  transit  to  the  ocean  of  this  produce. 
Mr.  Webbter,  Mr.  Clayton,  Mr.  Everett,  and  Mr.  Marcy,  who  conducted  th*} 
negotiations  pending  the  reciprocity  treaty,  held  that,  so  far  as  the  interchange 
of  produce  was  concerned,  the  United  States  would  furnish  by  far  the  largest 
market ;  but  they  acknowledged  that  it  would  iacrease  our  commerce,  and  that 
beyond  this  trade  the  securing  to  our  citizens  the  free  navigation  of  the  St. 
Lawrence  and  the  privilege  of  the  fisheries  were  benefits  of  great  importance  in 
the  present  and  of  even  greater  moment  in  the  future.     Mr.  Everett,  as  Secre- 
tary of  State,  in  a  report  to  the  Preaideilt,  February,  1853,  upon   the  pending 
negotiations  for  a  liberalization  of  trade  with  the  provinces  and  the  adjustment 
of  the  free  navigation  of  the  St.  Lawrence  and  the  fisheries,  said: 

Even  if  the  Uuited  States,  as  the  party  to  the  compact  which  furnishes  by  far  He  largest 
intiiket  to  the  other,  should  think  it  necessary  in  some  respects  to  limit  and  in  others  to 
enlarge  the  number  of  articles  subject  to  the  arrangement  beyond  what  the  British  govern- 
ment or  the  provinces  would  prefer,  the  Secretary  has  been  of  opinion  that  the  main  provis- 
ions promised  so  much  benefit  on  both  sides  that  it  would  be  felt  to  be  expedient  to  ent«^r 
into  tne  arrangement  for  a  definite  time,  ieaving  to  f'.;mre  negotiations  and  legislation,  guided 
by  experience,  to  render  it  still  more  satisfactory. 

To  what  extent  these  views  were  correct  or  otherwise  is  now  more  easily 
determined  than  it  was  possible  to  estimate  at.  an  earlier  period.  The  treaty 
has  been  terminated  nearly  two  years,  and  the  returns  since  that  time,  con- 
trasted with  those  of  previous  years  when  the  treaty  was  in  operation,  give 
data  to  go  upon,  instead  of  mere  surmise.  I  propose,  therefore,  to  give  these 
returns,  and  also  the  prices  paid  by  American  purchaserB  in  the  Canadian 
markets  for  leading  articles  imported  into  the  United  States  before  and  since 
the  repeal  of  the  treaty,  togethe.  with  stch  other  further  information  aa  will 
answer  fully  the  resolution  upon  all  the  subjects  alluded  to. 

I  am  indebted  to  the  Canadian  finance  department  for  much  original  informa- 
tion of  a  statistical  nature,  which  will  be  found  embodied  in  this  report.  The 
returns  are  brought  down  to  the  latest  period  and  are  oflScially  correct.  Some 
valuable  data  have  also  been  extracted  from  an  excellent  work  published  in 
Canada,  called  "The  Year  Book,"  compiled  from  official  sources.  ^'^'n|(>; 

The  following  tables  give  the  trade  returns  of  all  the  British  North  American 
provinces,  from  1850  to  the  present  time,  distinguishing  how  much  of  the  com- 
merce w&8  with  the  United  States,    .All  the  values  are  estimated  in  gold  : 


.©7 . 


•>Jtf,. 


TRADE   WITH   THE   BRITISH   PROVINCES. 


>'■(' 


Canadian  trade  from  the  year  1850  to  June  30,  18G7,  [values  in  gold.) 

<  '  •  IMPORTS. 


iwi: 


Yoari. 


Pro  tnO  real 
Urituiu. 


1851 

18.52 

1853 

1854 

it5dD  ■  ••«>■•  •■>•■< 

1856 , 

1857 

1858 

1659 , 

1861 , 

1863 

1863 

1864,  (6monthH). 

1864-'65 

)865-'66 

1806-'67 


$9,631,931 

12,  037,  993 
10,671,133 
18,489,  131 
82,  963,  330 

13,  3i)3,  5tit) 
18,212,934 
17,5.VJ,(W5 
12,  286,  H.53 

14,  767,  873 

15,  839,  .320 
17,945,570 
21,089,915 
20,  176,964 
11,878,907 
21,035,871 


34,  060,  969 


From  KrltlMb  coioniuH« 


lu     North 
Americii. 


$385,  620 
436,971 
480,  954 
633,  66  t 
67.5,115 
8(m,  988 

1,  0;»3,  594 
751,888 
423,  366 
381,  370 
393,  464 
499,  177 
.53.''>,  4(i9 
510,713 
93,  831 
51 1,  570 


In  Wt'Mt  111- 
dluH. 


$4,  451 

13,  625 
5,  115 
3,  479 
8, '.73 

14,  1.35 
17,614 
26,823 

.533 

15,  802 
371 

38,  851 
133,  195 
217,  3.33 
209,  329 


From  llnitHd 

Statet). 


1,108,373  137,81)2 

I 


$6,  372,  494 

7,  935,  972 

8,  477,  693 
11,783,  147 
15.5:1,3,098 
20,  ii-iii,  677 
23,7114,509 
aO,224,(>51 
1.5,63.5,550 
17,  .592,  265 
17,  258, 585 
20,2116,080 
22,  642,  860 
18,457,683 

7,953,4  m 
14,  820,  .',77 


20, 268,  903 


From  other 
cuuutriuH. 


$365,216 

570,  296 

651,  5!  18 

1,074,039 

1,  355,  109 

1,  073,  909 

1,616,736 

868,211 

732,  (.83 

793,  873 

905,  260 

' ,  098,  96;) 

1,673,814 

2,0;J4,651 

1,  264,  440 

3.  274,  644 


3,  869,  396 


TotalH, 


$16,  7.59,  702 
8i».  994,  H.57 
20,  'm\,  493 
31,981,436 
40.  529,  .335 
36.086,  169 
43, -)84  387 
39,  43 ).  498 
29.  077,  8.58 
33.53.5,913 
.34,413.431 
39,7.'>0,  161 
45,  980, !»:» 
41,313,206 
21,4(16,712 
39,851,991 


Coin    and 
bullion. 


$323, 366 
439,  933 


675 
10,  248 
35,  504 

3,  304.  675 
9.619,694 

4,  653, 887 
8,  475.  504 
4, 768,  478 


59,  633, 670  i      6, 610,  872 


EXPORTS. 


To    Great 
Britulu. 

To  BritlHh  colonleH. 

To  United 
StatuD. 

To     other 
countrleii. 

Totals. 

Coin    and 
bullion. 

Years. 

4 

In    North 
America. 

In  West  In- 
dies. 

18.50 

$4,  803,  399 
6,031,401 

6,  756.  857 
11,465,408 
10,  87(5,  714 

6,7.38,441 
10,  467,  644 
11.102,045 

8,898.611 

7.  973,  106 
12.749,891 
18,  787,  .592 
15,045,420 
17,401,8.56 

4,  700,  244 
14,  637,  1.58 

$1,  808,  776 

1,037,519 

812, 139 

1,  380,  466 

1, 539. 275 

1,023,447 

1,086,041 

875,  239 

960,  426 

840, 475 

723. 5:14 

1,  030.  9;)9 

826.871 

935, 196 

348,  090 

1,065,057 

$8,  :176 

3,912 

13,  961 

$5, 9.3.3,  243 
4,917,429 
7,5:16.155 
10,  735,  4;55 
10,  4 18,  883 
20,002.291 
20,  218,  654 
14,762,641 
13,  37:J,  1.38 
15,  .586,  9 17 
20,  698,  :)48 
16, 158,  :i74 
16,980,810 
20,  9 10,  .53.3 
8.  022,  963 
24,213,588 

$108,281 
164, 144 
188,  495 
239,  974 
185,  329 
420,  533 
263,  775 
866,  699 
840,  4:i3 
355,  806 
370,  889 
380,  :195 
550,  553 
841,002 
94,089 
835,  850 

$12,943,795 
13,810,604 
15,  307,  607 
2;i,80l,;i03 
23,  019,  190 
28,  188,461 
:)2,  047,  017 
27,  006,  634 

23,  472,  W)!) 

24,  763, 329 
34,  542,  663 
36,  :i69,  682 

;;:{,4i7,i28 

40,  146,  129 
1.3,  179,  342 
40,  792,  960 

1851 

18.52 

1853 

1854 

8,  989 

3,749 

10,  803 

1855 

ia56 

1857 

1858 

1859 

7,025 

$3, 6.52 

I860 

89,238 
244, 513 
178,997 

1,  685, 403 
704,166 

1,688,191 

1861 

12,  :i82 

13,  775 
57,  542 
14,016 
41,313 

1862 

1863 

1864,  (6month§).. 

ie64-'65 

1865-66 

1866-'67 

14,  450, 854 

3,  549, 197 

.53,815  j  83,179,416 

980, 903 

42. 154, 185 

2,916,034 

■*»*4 


For  the  year  ending  June  30,  1867,  the  exportH  from  Canada  to  the  United  States  were  mainly  composed  of 
the  following :  ' 

Produce  of  the  forest ; $6,831,252 

AnimalH  and  their  products 3,636,192 

Agricultural  products 11, 185, 227 

• ;;"    '  ''■'-'     Nova  Scotia  trade  for  the  years  1865  and  1866.      '"'  ';''•  ' 

\"     v':   "      •  •';■;*,'     -"■■--••;-    ■■;'  "^^  '    1865.    "o'-v^-'     i866.  •' 

Imports $14,381,662         $14,381,008 

Of  which  from  the  United  States 4,  325,  857  4,  04 1,  844 

Exports 8,  830,  693  8,  043,  095 

Of  which  to  the  United  States 3,  610,  797  3,  228,  550 

The  principal  articles  of  export  were  fitih,  about  3,500,000  dollars,  and  coal 
1,000,000  dollars.  ^ 


■ 

4  TRADK   WITH   THE   BRITISH   PROVINCES. 

New  Brunswick  trade  for  the  year  ending  December  31,  1866. 

Imports $10, 000,  704 

Of  which  from  the  United  States 3,  743,  896 

Exports 6,  373,  705 

Of  which  to  the  United  States 1,  866, 944 

Newfoundland  trade  for  the  year  1866, 

Imports $5,  784,  849 

Of  which  from  the  United  States 1,  399,  038 

Exports 5,  694,  305 

Of  which  to  the  United  States 426,  436 

The  above  vahies  do  not  include  the  shipments  of  dry  and  pickled  fish,  oils, 
furs,  &c.,  from  Labrador  direct  for  foreign  markets. 

The  imports  of  Newfoundland  are  chiefly  breadstuffs  and  animal  food.  In 
1866  the  imports  were — 

Of  flour 1..:. 183,677    bbls.  $1,  002,  062  value 

Of  bread 46,  256^  cwts.            175,  158     " 

Of  pork 21,  666ibbl8.             350,698     " 

Of  butter 15,  630    cwts.            285,  332     •• 

The  exports  from  Newfoundland  are  principally  fish  and  their  products. 

The  reciprocity  treaty  expired  on  the  17th  day  of  March,  1866.  The  fol- 
lowing statements  give  the  prices  of  Canadian  produce  in  the  Montreal  and 
Toronto  markets  upon  the  first  of  each  month  since  January,  1865,  and  which 
the  termination  of  the  reciprocity  treaty  might  be  supposed  to  affect,  so  far  as 
it  put  an  end  to  their  free  admission  to  our  markets  : 


•}    5 


-iX  ^  \  ? 


300,  704 
743,  896 
J73,  705 
355,  944 


784, 

849 

399, 

038 

694. 

305 

426, 

436 

ish. 

oils. 

>od. 

In 

62  value 

58 

« 

98 

4( 

32 

« 

cts. 

The  fol- 

real 

and 

id  which 

80  far  as 

I- 

I' 


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1^ 


^ 
> 


is 


I 


I 


o 


TRADE   WITH  THE   BRITISH   PROVINCES. 


wm  r^  r.H  p^  p«i  F-1  FN  ^4  r-t  rN  ^  f-4  f4  ^  fH  rN -^  fH  f* 

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p-  r-  IN  (N  lO 

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<o  S  Is  <-  S  9      S 


5 


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It  ',f    ,;-    J.'>  ';.,  ;'n;oi.)   li'v-,..'     In  >,-,(;      id,         •  ',,'.i,''    ■   'H 


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oooooopoOQOOiniooooininooininoooinoinoinooooinoQ 
St  ■*  •*r<'*inininio<o<o(omininioi-io«o(ot»t»j-t-t-r't-ooooQot-t>-t-t-t-<ot~-p» 

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88 

ODOO 


3J 

5 

13 
O 

1i 


TRADE    WITH   THE   BRITISH    PR0VINCR8. 


PnccH  of  Canadian  produce  in  the  Toronto  market,  (spvcic  valuation.) 

i 


',',    .        ;  <l      .  !.  I  ■,   I   ,  I,  ,U      •>/•'!:'       Ill  f 

' i       I  I'      M        Months.        Ill   'u>    •■li 

'■'       .    '    '    .     '  i  .         .    '  ^  I.     -'M'-Mfl 

' '   '  ■'■    •  '>,      M  1  iH .'. ;       'iji  1 '         II n 


ii 


lOOS-Jannnry... 
Ft'hiuHiy  . . 

Miirch 

April 

Miiy 

JllllH 

July 

AllKIIHt 

8i'|)triiibfr. 

Octoljrr 

November  , 

Decemlior  . 

18CC— Jmiuiiry  .. 

Febrmiry  .. 

Mureli 

♦April 

May 

Juno 

July 

AugUHt  .... 

September 

October 

November  . 
Decembor  . 
JllliUHry  . .. 
Frbruury . . 

Mnreh 

April 

May 

JU    -3 

July 

AugUHt 

September  , 
October . . . . 
November  . 
Ducuinber . 


Flour. 


1867 


$4  95 

4  2.5 
4  3.'l 

4  5U 
ft  00 

5  H7 

5  as 

5  18 
fi  ou 
(I  87 
fi  50 
G  2.'> 

6  a5 

7  0« 
7  V.'5 

7  (0 

8  US 
8  25 
8  00 
<i  UU 
(i  CA) 


7  iJO 
7  87 
7  50 

7  50 

8  00 
7  75 
B  50 

9  00 
9  25 
7  75 


7  50 
7  50 
7  25 


_  u 

o 
'A 


|3  80 

3  H5 


4 

4 
4 
3 
4 
4 
5 
6 
5 
5 
5 
5 
5 
5 
6 


or* 

IH 

7:i 

.'10 

i»o 

«5 
35 
00 
73 

ao 

00 
03 
25 
25 
25 
(1  80 

6  50 

5  50 
C  .10 

7  53 

6  80 
6  .50 

6  (K) 
«  80 
()  80 

7  50 

8  30 
8  nil 
7  25 
7  00 
fi  75 
6  85 
6  65 
6  50 


Wheat. 


I 

I 


|l)  80 
81 
83 
03 
!)8 
1  13 
1  (8 
05 

1  m 

1  13 
1  14 
1  10 
1  02 
1  09 
1  07 
I  13 
1  40 
1  40 
1  40 
1  20 
1  40 
1  43 
1  .50 
1  37 
1  38 
1  42 
1  .55 
1  8tl 
1  95 
]  75 
1)0 
45 
40 
47 
45 
45 


I 


$0  go 

93 
98 
9(j 
04 
Hi 
95 
05 
811 
48 
50 
45 
20 


1  4U 


3r> 

47 

(H? 

95 

65 

20 

57 

50 

76 

60 

70 

80 

80 


2  00 
10 
87 
80 
65 
50 
56 
.57 
58 


o 

■3  . 

o  a 

JO  3 


r 


$0  S8 
62 
HO 
90 
P4 
Mi 
88 
80 
62 
59 
63 
62 
62 
65 
63 
67 
71 
70 
73 
«i) 
58 
60 
75 
66 
72 
73 
71 
77 
79 
70 
75 
75 
80 
82 
73 
72 


►. 

% 


$0  69 
68 
67 
74 
73 
65 
55 
S5 
64 
80 
70 
68 
72 
60 
65 
64 
66 
60 
6.5 
5.5 
54 
65 
58 
52 
58 
.55 
.58 
64 
70 
68 
70 
7.5 

eo 

83 

82 

1  05 


$0  :ii 
34 
33 
32 
33 
38 
38 
34 
87 
3L 
.30 
30 
30 
33 
37 
47 
.54 
48 
50 
53 
58 
58 
95 
55 


\ 


*  Reciprocity  treaty  terminated. 

An  examination  of  these  tables  shows  the  remarkable  fact  that  large  as  were 
the  sales  of  produce  by  Canada  to  the  United  States,  under  their  free  admisision 
to  our  market ;  yet  the  prices  obtained  in  Canada,  after  the  termination  of  the 
reciprocity  treaty,  for  such  articles,  was  in  almost  every  instance  higher  than 
when  it  was  in  operation.  It  cannot  be  denied — granting  the  correctness  of  the 
figures  given  above,  which  are  from  official  sources — that  whatever  amount  of 
this  produce  was  purchased  for  consumption  in  the  United  States,  since  March, 
1866,  was  purchased  at  as  high  prices  in  the  Canadian  markets  as  before  the 
abrogation  of  the  treaty ;  and  that  the  American  consumer  was  compelled  to 
pay  the  American  duty  in  addition.  / 


ii(. 


IMPORTATION  OF  PINE  LUMBER  FROM  CANADA. 


■I'i-  t 


When  the  reciprocity  treaty  was  under  discussion,  the  free  admission  of  pine 
lumber  was  strenuously  opposed,  upon  the  ground  that  Canadian  lumber  would 
interfere  with  the  domestic  supply,  and  that  consequently  the  American  lumber 
manufacturer  would  suffer. 

Since  then,  however,  the  supply  of  pine  lum^  sr  has  nearly  ceased  in  the 
eastern  States,  and  the  consumption  in  the  eastern  and  middle  States,  on  the 
Atlantic  slope,  has  almost  wholly  depended  upon  the  Canadian  supply  from 


TRADE   WITH   THE    BRITISH   PROVINCES. 


!i 


6 


^U  31 
34 
33 
39 
33 
32 
33 
34 
87 
31 
30 
30 
30 
32 
37 
47 
54 
48 
50 
52 
5a 
52 
55 
55 


the  vallciy  of  the  Ottawa.  Larpe  qimntitien  of  pine  lumber  are  mnnnfuctured 
in  Michigan,  WiHconuin,  and  northern  MinneHota;  hut  tlio  growiti}?  wc-^Nrn 
(leinund  it)  even  greater  than  the  industry  and  rcaourceM  of  thorte  Stalurt  ciin 
mei't. 

The  d<:creaMiti{5  Hupply  of  himbor  in  Maine  itidiic(;d  sovcral  ('nt('r|)ri8iii<j  citi- 
zens of  that  State  a  tow  ytmrn  ajro  to  look  aliout  for  new  nonrcert  of  production, 
and  tliey  thuH  h-arned  about  the  immenHe  pineries  of  nortlwtrn  Minnesota — at 
that  tim(;  a  wildernesH,  untouched  by  the  hinibiM'Uian's  axe,  fp>(|U('nt«'(l  only  by 
wihl  animalH  and  tlie  scarcely  less  sava{;e  Indians.  Thes(;  pineries  are  a  con- 
tiiuiation  of  the  pine  regions  of  Michigan  and  Wisconsin,  aiul  stretch  alon;;  the 
Ciiippewa  and  St.  Croix,  tiio  shores  of  Lake  Superior,  and  acniss  the  Missis- 
Bippi,  above  and  beh)W  St.  Cloud.  Large  tracts  of  these  lands  werc!  purchased 
at  the  time,  but  it  is  only  within  a  very  recent  period  that  they  have  been  occu- 
pied. The  increase  of  population  in  southern  Minnesota  and  the  surrounding 
States  has  created  an  enormous  demand  for  building  material,  and  the  saw  mills 
erected  at  St.  Croix,  St.  Anthony  Falls,  Minneapolis,  &c.,  have  been  found 
unable  to  keep  pace  with  the  iud'easing  wants.  The  trade  may  bo  said  to  bo 
almost  in  its  infancy,  yet  it  already  exceeds  the  busieRt  scenes  ever  witnessed  on 
the  banks  of  the  Penobscot,  Kennebec,  Androscoggin,  Saco,  and  J'a8sama<juoddy 
But  all  this  scarcely  supplies  the  present  local  demand. 

Now  that  the  forests  of  Maine  have  been,  to  a  great  extent,  denuded  of  pine 
timber,  the  eastern  States  must  depend  upon  the  pineries  of  the  Ottawa  valley. 
It  is  a  waste  of  time  to  enter  into  any  calculation  as  to  the  relative  cost  of  trans- 
porting lumber  from  Wisconsin,  Michigan,  and  Minnesota  to  the  eastern  States, 
and  the  cost  of  freighting  it  from  the  Ottawa  to  the  same  destination,  because 
even  were  the  cost  the  same,  which  in  the  nature  of  things  it  would  not  be,  the 
western  States  require,  and  will  continue  to  consume,  all  the  lumber  that  can  be 
produced  in  the  northwest.  The  Atlantic  Stales,  from  Maryland  up,  must 
either  use  Canadian  lumber  or  find  some  other  material  as  a  Hubstitute  therefor. 

Upon  the  termination  of  the  reciprocity  treaty  a  heavy  duty  (20  per  cent ) 
was  imposed  upon  Canadian  lumber  by  the  United  States.  The  following  table 
will  show  that  this  duty  has  been  paid  by  the  American  purchaser  and  con- 
sumer ;  the  prices  given  for  lumber  delivered  on  the  barges  at  Ottawa  being 
hipfher  now  than  in  1865 — and  nearly  all  of  it  being  purchased  for  the  Ameri- 
can market — finding  its  way  principally  to  Albany,  via  the   Cham  plain  canal. 

Statement  oj  the  price  in  the  Ottawa,  Canada,  market,  of  stock  boards  and 
siding  planks,  the  principal  kinds  of  lumber  purchased  for  consumption  in  the 
United  States,  and  7o'nc/i  the  repeal  of  the  reciprocity  treaty  might  he  sup- 
posed to  have  effected,  (since  January,  1865.J 


in.f.H'  i  ;; ■.!■  'Ill' 


1 
■■>  '"'11'.:;:    -I'.'.iu  'ir.i  '  •  ,1 1    ni 


1865 
1860 
1867 


Stock  boards  or 
ahippin^  boards : 
Price  iu  gold  de- 
livered on  the 
bar^e  at  Ottawa, 
per  M.  ,    ;  '(,■''''' 


$9  50  to  $9  75 
10  00 
10  00 


Siding  planks:  Price 
iu  gold  delivered 
on  the  barge  at 
Ottawa,  per  M. 

;>d.J    Ui  Ov..;!!;,      ^ 


$15  00  to  $16  00 
17  50 


The  practice  of  the  wholesale  lumber  trade  in  Canada  now  is,  that  at  the 
commencement  of  the  season  contracts  for  the  year  are  made  by  American  pur-   , 
chasers,  so  that  the  shipments  to  the  United  States  do  not  vary  ;  and  it  is,  there- 
fore, unnecessary  to  give  the  monthly  price  lists.     The  prices  for  lumber  are 
much  higher  than  used  to  be  paid  some  years,  ago.  .Tjie^cpntra-Qte  fpr  the  i 
approaching  season  are  not  yet  made.  y  %.  -r 


8 


TRADE    WITH   THE   BRITISH    PROVINCES. 


To  show  not  only  timt  nearly  »ill  tlio  tilankM  an<l  boards  manufactnred  In 
Cuniula  are  for  tho  American  markotH,  but  that  tlie  abrogation  of  the  reci- 
procity tnatv  hiiB  not  chocked  tlio  BUpply  purchaned  there,  while  it  baa  enhanced 
the  cost  to  the  American  purchaser,  the  following  niturns  ;ire  given  : 

Exports  from  Canada  of  plankn  and  hoards  for  the  fiscal  yeart  ending  June 

30,  18G6  and  1867. 


Totiil  quniitlty. 
M.  tvot. 

Total  value. 

To  t\w  Unitod 
HtatoH. 

J866 

405,812 
533, 1U2 

^4,  .583, 075 
5,104,342 

$4,008,5.54 
5, 043, 307 

1807 

The  extent  and  capacity  of  the  lumbering  districts  of  Canada  are  thus  stated 
by  Canadian  authorities : 

The  hiiiibcriiijf  diHtrictH  of  the  comitry  may  hv,  divided  into  eight  parts  :  tlio  Haguonay 
vallf'y,  27,000  Hqimic  miloN;  the  St  Maurice,  21,000;  tho  vaileyH  betwi't'u  the  Sagueuayand 
tho  St.  Miiuiico  valloy,  8.000;  botwoon  the  St.  Mauiicuand  Montreal,  9,000  ;  tho  Ottawa  ral- 
loy,  87,701 ;  the  valley  between  KingHton  and  Trent,  2,350;  the  Trent  valley,  0,200;  boHides 
05,000  east  of  the  Sagiicnay,  and  00,000  divided  into  LakeH  Hnron  and  Superior.  Total, 
21)7, 7J1  8<|uaro  milcH.  Abont  25  per  cent,  of  the  standing  pine  ifn  available  for  siinared 
timber  ;  40  per  eent.  more  for  saw-logs  ;  the  reuiaining  35  per  cent,  la  uudergrowth,  useless 
or  dumuged.     Tho  average  ([uantlty  of  timber  got  out  yearly  is — 

y  Cubic  feet. 

Oak... 1,  .58.5, 856 

Elm 1,438,707 

Ash 149,930 

Birch 92,714 

Tamarac 987 ,  002 

White  pine 17,005,075 

Red  pine 2,500,300 

Total 24,480,30.1 


i 


«J 


Sawed  planks,  250,000  M  feet,  board  measure,  or  over  one  million  and  three-quarter  tons. 

The  export  lumber  trade  of  the  provinces  of  New  Brunswick  and  Nova  Sco- 
tia with  the  United  States  is  unimportant.  'J^he  pine  lumber  of  Canada  is  all 
that  is  consumed  here.  The  square  timber  all  goes  to  Europe.  Since  the  ter- 
mination of  the  reciprocity  treaty,  an  effort  has  been  made  in  Canada  to  induce 
that  government  to  place  an  export  duty  on  pine  lumber,  but,  so  far,  the  proposi- 
tion has  not  been  considered  favorably* 

*  The  imposition  of  a  duty  of  20  per  cent,  on  manufactured  lumber^  under  our  existing 
tariff',  is  causing  a  great  deal  of  dissatisfaction  in  Canada,  and  has  added  to  the  pressure 
upon  the  Canadian  government  to  establish  export  duties  upon  all  descriptions  of  lumber, 
manufactured  or  otherwi.se.  The  following  proceedings  took  place  in  the  local  legislature 
of  the  province  of  Ontairo  on  the  20th  February,  1808 : 

'•Mr.  Christie  moved  the  appointment  of  a  select  committee,  to  consider  the  advisability  of 
memorializing  the  government  to  impose  a  duty  on  saw-logs,  shingle-bolts  and  stave-bolts 
manufactured  in  this  province,  and  exported  froai  the  Dominion.  He  said  that,  since  the 
abrogation  of  the  reciprocity  treaty,  a  large  trade  in  the  export  of  saw-logs  and  shingle  and 
stave  bolts  had  sprung  up.  Since  that  time,  the  American  government  had  imposed  a  duty 
of  20  per  cent,  on  manufactured  lumber,  but  they  admitted  free  of  duty  saw-logs,  stave- 
bolts,  and  shingle -bolts.  Consequently,  the  manufacturer  on  this  side,  as  compared  with 
the  manufacturer  on  the  American  side,  was  placed  at  a  disadvantage  of  20  per  '  \t ,  with 
reference  to  the  manufacture  of  an  article,  the  profit  of  which  ought  of  right  to  oeloug  to 
the  Canadian  manufacturer.  The  extent  of  this  export  trade,  under  these  circumstances, 
was  astonishing.  He  had  been  told  yesterday  by  a  gentleman  from  Oswego,  that  with  three 
tug-boats  theyliad  tugged  across  saw-logs,  unmanufactured,  to  the  amount  of  40,000,000 


TRADE    WITH    THE   URITI8H   PROVINCES. 


TluTo  cnn  bo  no  doubt,  from  tbo  returns  jiiHt  ^ivcn.  tbnt  up  to  thirt  tiinn  tho 
nbro|rHtii)ii  nt'  tbo  rcciiirocity  ti'cnty  hnn  not  iitfV'cttMl  ('iiniuliiiii  intncMtrt  iiijiiri- 
ouHly  ;  the  iii^li  prii'o  ot'  produco  in  tbo  IJnilfd  States,  iind  tho  dt^ran^enicnt  of 
our  currency,  probably  nctitifi^  xouicwbat  in  tbtfir  favor.  Tl\e  provincen  of  Now^ 
IbutiHwick  and  Nnva  Scotia  buve,  bowovcr,  Hutt'cred  in  tb«'ir  cxportH  of  both 
i\A\  and  coal— tb«>  American  duty  practically  oxcludin);  tlu^  Hale  of  tliette 
nrticlei*  in  our  marketH,  altli(Mi{;li  it  baH  not  benefited  tlu^  American  producer,  ha 
tbe  pricex  are  no  bi^^ber  lu^rc  tban  wben  provincial  competition  existed  by  tbeir 
free  adminnior.  ( )ur  priiu'.ipiil  tradi;  in,  of  courHe,  witb  the  most  (xtpulous  divinion 
of  tlie  provinccH,  now  known  by  tbo  names  of  Ontario  and  (.^iieliec.  Tbo 
cHtimated  population  of  confederated  (janada  at  tbis  timu  is  3, ;>()(), 000  ;  of 
wbicb  but  (iOO.OOU  renido  in  New  Brunswick  and  Nova  Hcotia.  Tbe  returns 
already  ^iven  hIiow  tbat  I  be  repe.il  of  tbo  reciprocity  treaty  ban  not  lowered  tbo 
prices  of  produce  in  Ontario  and  Quebec,  Avbile  tbo  ex})ort  of  lumber  to  tbo 
united  States  lias  not  only  been  great«'r,  but  tbo  prices  paid  for  it  in  (Janadii  / 
are  bibber  now  tban  over.  Tbesj;  results  are  unexpocKui  in  tbo  general  belief  ^ 
wbicb  prevailed  tbat  a  difVenmt  exbibit  would  be  prcsentud,  conHcquunt  upon  tbe 
imposition  of  duties  on  our  iiortlu^rn  frontier. 

Under  tbe  Canadian  tariff,  adopted  December  21,  18G7,  by  tbe  confederated 
parliament,  coal  and  coke;  are  still  ulmitted  free  of  duty.  A  proposition  was 
made,  wfien  tln^ir  tariff  bill  was  under  consideration,  to  impose  a  duty  of  .00  cents 
a  ton  upon  foreign  coal,  by  way  of  meeting  tbo  duty  impost^d  by  our  tariff  since 
tbe  termination  of  tbo  niciprocity  treaty.  It  was  alleged  by  Nova  Scotia  mem- 
bers tbat  a  duty  of  50  cents  a  ton  would  enable  tbat  province  to  send  coal  to 
western  Canada  and  compete  successfully  witb  Aiiiericon  coal  in  tbat  market. 
The  ministry,  bowever,  opposed  tbo  proposition,  and  it  failed  to  carry.  It  is 
not  improbable  tbat  it  may  be  again  offered  during  tbo  session  of  J'arliamout 
now  sitting.  Tbe  value  of  tbe  coal  and  coke  imported  into  (Canada  during  the 
fiscal  year  ending  June  .30,  1867,  was  $1,253,115;  of  wbicb  $730,676  was 
imported  from  tbe  United  States.  A  Canadian  duty  of  50  cents  a  ton  would 
uiuloubtedly  give  tbe  whole  of  this  trade  to  Nova  Scotia;  but  tbe  Canadian 
government  could  not  consent  to  such  an  imposition  unless  by  a  total  disregard 
of  tbe  interests  of  tbe  consumers  in  western  Canada  for  tbe  benefit  of  a  cir- 
cumscribed and  purely  local  interest  in  tbeir  extreme  eastern  limits,  and  w'^h  a 
view  solely  to  retaliate  against  the  duties  levi«  d  upon  coal  under  our  taritt  It 
is  only  doing  simple  justice  to  tbe  existing  goveniment  of  Canada  to  acknowl- 
edge that  it  has  strenuously  opposed  the  ill-considered  attempts  which  have  been 
made  to  induce  the  adoption  by  parliament  of  anything  approaching  a  retaliatory 
policy.  The  liberality  and  good  judgment  which  that  government  has  displayed 
since  the  confederation  of  the  country,  in  its  commercial  policy,  must  have  great 
weight  and  will  be  fully  appreciated  by  Congress  in  considering  the  subject  of 
a  liberalization  of  our  trade  relations. 

THE    FRliE    NAVIGATION    OF   THE    RIVER    ST.    LAWRENCE    AND    THE  FISHERIES. 

The  resolution  calls  for  information  "  as  to  the  nature  of  the  arrangements 
made  for  securing  to  American  citizens  the  free  navigation  of  tbe  river  St. 
Lawrence,  and  the  privilege  of  fishing  in  the   waters   adjacent  to  Canada." 

feet.  These  exports  chiefly  took  place  from  the  western  peninsula,  and  went  to  Cleveland, 
Erie,  BuiTHio,  Oswego,  and  Touawanda.  The  mills  in  Tonawanda  and  Oswego  had  each  a 
nmnutacturiug  capacity  of  20,0()U,0U0  feetl  The  export  of  so  large  a  quantity  of  lumber 
from  a  section  of  country  already  drained  to  a  considerable  extent,  he  thought,  should  be 
preyoutod.  Petitions  were  now  in  circulation,  to  be  forwarded  to  the  government,  asking 
protection  in  this  maUer.  It  was  not  one  which  came  within  the  class  of  questions  to  which 
free  trade  versus  proiectiou  was  applicable.  It  was  for  the  interest  ot  the  province,  he 
thought,  to  retain  as  great  a  portion  of  the  timber  now  on  the  peninsula  as  possible,  for  the 
uses  of  the  country. 

*' The  motion  was  agreed  to."  .         ,'     ' 


10 


TRADE   WITH   THE   BRITISH  PROVINCES. 


4' 


These  queationa  were  embraced  in  the  reciprocity  treaty,  and  consequently  upon 
the  repeal  of  that  measure  they  reverted  to  the  condition  existing  previous  to 
1854.  No  arrangements  or  nnderatanding  have  been  entered  into  since  the 
abrogation  of  the  treaty,  between  the  United  States  nnd  the  government  of 
Great  Britain  or  of  Canada  with  reference  to  these  subjects.  But  the  Canadian 
government  has  seen  fit  to  permit  the  arrangement  practically  to  continue  in  force, 
BO  far  as  our  citizens  are  concerned,  in  the  hope,  as  they  avow,  that  some  under- 
standing will  shortly  be  entered  into  for  liberalizing  trade  between  the  two 
countries,  and  tiieir  desire,  in  the  meantime,  to  do  nothing  which  might  bear  an 
unfriendly  interpretation.  The  freedom  to  navigate  Lake  Michigan  they  do  not 
consider  as  any  equivalent. 

Strictly  speaking,  it  can  scarcely  be  said  that  the  Canadian  government  has 
permitted  tlie  arrangement  under  the  reciprocity  treaty  to  continue,*  ao  there  is 
really  no  regulation  or  "  order  in  council"  upon  the  subject  of  the  St.  Lawrence. 
Since  the  termination  of  the  treaty  American  vessels  desiring  to  pass  either  to 
or  from  the  ocean  through  the  St.  Lawrence,  have  asked  permission  in  each  case 
of  the  Canadian  government,  audit  has  in  no  instance  as  yet  been  refused.  But 
the  informal  manner  in  which  this  peruiission  has  been  given,  and  the  absence 
of  any  general  regulation  upon  the  subject,  evidently  shows  that  the  Canadian 
government  does  not  desire  to  have  these  spocial  permits  regarded  as  precedents, 
cr  as  in  any  manner  committing  the  government  in  its  treatment  of  the  question 
hereafter,  should  no  general  arrangement  be  entered  into  with  the  United  States. 

The  free  imvigation  of  the  St.  Lawrence  is  a  matter  of  necessity  in  the  im- 
mense growth  of  the  great  northwest.  Already  the  various  channels  of  com- 
munication for  the  produce  of  that  vast  territory  to  tide-water,  where  it  seeks 
the  markets  of  the  world,  are  crowded  beyond  their  capacity,  at  certain  periods. 
No  artificial  communications,  no  matter  upon  how  liberal  a  scale  they  may  be 
constructed,  will  be  sufficient  for  the  almost  immediate  future.  Apart  from  the 
question  of  direct  trade  between  the  upper  lakes  and  Europe,  the  existing  com- 
munication, even  with  its  limited  canals,  is  of  the  last  importance.  It  is  not 
exaggerating  its  consequence  to  assume  that  even  a  war  for  the  possession  of 
the  right  to  the  natural  outlet  to  our  great  lakes  and  the  fertile,  teeming  territory 
they  dra'.n,  would  be  less  costly  to  us,  in  its  consequences,  than  the  loss  which 
the  closing  of  that  outlet  to  our  products  would  enti\il.  And  yet,  notwithstand- 
ing the  gravity  of  this  question  and  the  extent  of  the  interests  involved,  our 
citizens  enjoy  the  privilege  at  this  moment  solely  through  the  liberality  of  the 
Canadian  government,  without  any  understanding  whatever  of  an  official  or 
even  unofficial  cbaractei',  and  without  the  right  to  enter  a  complaiut  if  the  per- 
mission to  use  that  river  was  refused. 

It  is  useless  to  go  into  tabular  statements  to  show  that  up  to  this  time  the 
St.  Lawrence  has  not  been  used  to  any  great  extent  as  an  outlet  for  American 
produce.  It  is  not  necessary  to  advert  to  the  important  indirect  influence  which 
the  fact  of  the  existence  of  this  great  natural  outlet  has  in  the  cheapening  of 
freights  from  the  west.  It  is,  as  it  were,  a  standing  menace  against  the  tyranny 
which  a  single  route  might  enforce,  and  operates  always  as  a  check  in  this  way. 
The  argument  that  the  St.  Lawrence  is  of  little  consequence  to  the  trade  of 
the  west,  because  it  has  not,  up  to  this  time,  been  used  as  an  outlet  for  our  pro- 
ducts, might  have  a  degree  of  plausibility  if  it  could  be  maintained  that  the 
productiveness  of  the  great  northwest  had  reached  its  limits,  and  that  the  crops 
of  the  past  were  not  to  be  exceeded  by  the  harvests  in  the  future.  The 
growth  of  the  western  States  is  of  almost  fabulous  rapidity  as  it  is  of  gigantic 
proportions,  and  who  can  pretend  to  set  limits  to  its  manhood  ?  Even  at  its 
present  pace,  how  long  will  it  be  before  the  produce  of  that  region  will  choke 
up  all  existing  means  of  transportation  ?  The  day  is  not  far  distant  when  the 
Mississippi  and  the  St.  Lawrence  will  each  be  covered  by  vessels,  floating  to 
leas  favored  countries  the  generous  fruits  of  the  boundless  prairies,  whilst  the 


TRADE    WITH   THE   BRITISH   PROVINCES. 


li 


tly  upon 
vious  to 
ince  the 
ment  of 
an  ad  i  an 
in  force, 
e  under- 
the  two 
bear  an 
y  do  not 

tent  haa 
there  is 
awrence. 
either  to 
ach  case 
id.     But 
absence 
an  ad  i  an 
BcedeutB, 
question 
d  States, 
the  im- 
of  corn- 
it  seeks 
1  periods. 
Y  may  be 
from  the 
ting  com- 
It  is  not 
essiou  of 
f  territory 
)ss  which 
ithstand- 
Ived,  our 
ty  of  the 
)iHcial  or 
:  the  per- 

time  the 
■American 
ce  which 
jening  of 
B  tyranny 
this  way. 
!  trade  of 


I 


railToads  and  canals  within  our  borders  will  be  burdened  also  by  the  overflowing 
harvests. 

The  following  is  a  statement  of  the  length  of  the  St.  Lawrence  navigation, 
and  the  present  capacity  of  the  canals  connected  therewith.  The  St  Lawrence 
navigation  is  2,385  miles  long,  and  eight  caruilb,  of  which  seven  are  Canadian 
and  one  American,  have  been  built  to  make  it  practic;ible  for  all  ita  length. 
The  annexed  exhibit  shows  the  various  distances  and  the  size  of  the  canal 
locks:   ■■•-.-.•■■-■-    -.■;..;,-,.:    ■     ,.  ,    .■■..■■.   .-.   ,i,.       .     ...,  ;  ,1 


StrnitH  of  Belle  iHle  to  hvtul  of  tide  ivater,  (Three  Rivcrn) 

To  the  Lachinu  canHl,  (Moutrcul) 

Lacli'ae  ciitiftl 

To  BeauhikriioiB  canal 

Beauhurnoiti  canal 

To  Coi'nwnll  cnnnl 

Cornwall  cHniil 

To  FarraiiV  Point  canal 

Farraii'H  Point  canal 

I'o  Rapide  Plat  caual 

Rapidu  Plat  canal 

To  Iroqnoiii  canal 

Iroquoia  and  Gulop'B  cunal 


To  the  Welland  canal,  (head  of  Lake  Ontario). 
Welland  canal,  (Luke  Ontario  to  Erie) . 


To  Sault  St.  Marie  canal  (bead  of  Lake  Hu-on) . 
Sault  St.  Marie  canal  (United  States) 


To  Fond  du  Lac,  (Lake  Superior). 
Total 


§ 


t:5 
"a  i 

<a  a 
'A 


900 
86 


15i 


5 

'ioi 
"ii 


2361 


625 


397 


2,3121 


§ 


S.9 

*  _- 


8i 


Hi 

"ui 

i 


4 


28 


721 


•ell- 


51ocki<,200by45. 


91ockH,  200by  45. 
7  loc'kV,  2()6  by  55'. 


1  lock,  300  by  45. 
21ockH,  4()0by45. 
5'loc'kV,200by45l 


27  locks,  150  by  26i 


1  lock,  350  by  70  nt 
top  tmdGI  at  bot- 
tom. 


Number  of  locks  57. 


Li 

■S-3 

«>  9 


9  ft. 
"9ft. 


9  ft. 
'9ft. 


9  ft. 
9  ft. 


lOift. 


"s  a 

K    to 


44f 


'48* 


4 

'iii 


151 


20Gi 
3:50 


5:)(!* 
12 


54  8i 


The  St.  Ours  lock  and  the  Chambly  canal  connect  the  St.  Lawrence  and  the 
Hudson  via  the  Richelieu  river  and  Lake  Chaiiiplain.  Distance  from  Montreal 
to  New  York,  456  miles. 

The  annexed  table  gives  the  dimensions  of  the  largest  vessels  which  can  pass 
through  the  various  locks ;  also,  through  the  Charaplain  and  Erie  canals  in  the 
United  States  : 


!, 


St.  Lawrence  canal 

Welland  canal 

Ottawa  canal 

Kidean  canal 

Chambly  canal 

Chaniplain  canal,  (United  Stales) . 
Erie  canal,  (United  States) 


Length  in 
feet. 


186 
142i 

95 
127 
114 

89 
102 


Breadth  in 
feet. 


44} 

26i 

18* 

31.^ 

23 

13i 

17i 


Draught  of  j        •'    •  '-.1/} 
water  when  i    Tonnage, 
loaded.      ! 


9 

10 
5 
5 
6* 
4 
7 


600 
400 
100 
250 
230 
70 
210 


.,-»j     .1,,',^    i>;/.i..,..., «;A/ili|-  ,.ti    1,-.  ,_  ,,'•■'"    •»•    '''*'.f>ii    .lu;4l(j   ,«./?)U<J  ■ 

H<\oVJ  f)!Ji  li^'i  {jifj^"'-^^*'!^  i  V  ,  THE  FISHERY  QUKSTIOnJ  -.n^  od':  'ht  HHQm>^i3'>i)bm-: 
•iii'V       ^mjr.tnV  -•,<(  '"2;/-!. j  •,,..,■  .     ir.,.    <,*,■?.«     -».;,-.^v    «,f-s  "i 

The  fishery  question  h  again  completely  unsettled  by  tlie  abrogation  of  the 
reciprocity  treaty.  Upon  the  termination  of  that  convention,  the  Canadian 
authorities,  in  conjunction  with  those  of  New  Brunswick,  Nova  Scotia.  Prince 
Edward  Island,  and  Newfoundland,  and  with  the  sanction  of  the  imperial  gov-  ^ 
ernment,  imposed  a  license  duty  of  50  cents  a  ton  for  the  season,  upon  foreign 
fishing  vessels.    The  license  was  fixed  at  that  nominal  sum  more  as  an  asser- 


12 


TRADE   WITH   THE   BRITISH   PROVINCES. 


4 


4 


y 


4  ! 


tion  of  the  rights  of  sovejreignty  in  the  shore  fisheries,  &c.,  than  with  any  belief 
that  it  would  afford  protection  to  the  provincial  fishermen ;  and,  as  stated  by 
the  Canadian  ministers  at  the  time,  in  the  expuc';ation  that  some  arrangement 
would  have  been  entered  into  by  which  trade  relations  betwfien  the  United 
States  and  the  provinces  would  have  been  revised,  adjusted,  and  liberalized. 
The  license  fee  was  increased  by  Nova  Scotia  (previous  to  confederation)  last 
year  to  $1  a  ton — the  other  provinces,  however,  making  no  change. 

Our  tariff  imposes  a  duty  of  $2  a  barrel  upon  ibreign-caught  fish  ;  and  the 
Canadian  fishermen  complain  that  this  duty  practically  excludes  them  from  our 
markets ;  whilst  at  the  same  time  nearly  all  of  the  mackerel  caught  by  Ameri- 
can fishermen  are  found  within  the  three-mile  limits  of  the  Canadian  coasts,  and 
are  procured  by  our  vessels  only  in  consequencri  of  the  Canadian  license  issued 
to  them.  Under  these  circumstances,  the  deepest  distress  actually  prevails  now 
amongst  the  Canadian  fishermen — to  such  an  extent  as  to  have  called  forth  the 
charitable  contributions  of  their  fellow-subjects  in  other  portions  of  the  country, 
not  dependent  upon  the  fishing  trade.  A  strong  appeal  has  been  made  to  the 
Canadian  authorities  and  the  imperial  government  to  increase  the  license  to  $2 
a  ton,  for  the  season,  upon  American  vessels,  and  I  have  reason  to  believe  that 
the  appeal  has  been  successful,  and  that  $2  a  ton  license  will  be  charged  upon 
foreign  vessels  this  season.  It  can  scarcely  be  maintained  that  the  Canadian 
gov(;rument  has  placed  the  license  at  too  high  a  sum,  under  all  the  circumstances. 
The  granting  a  license  at  all  is  a  friendly  act ;  and  the  fixing  of  it  at  $2  a  ton 
does  not  by  any  means  place  their  fishermen  upon  an  equality  with  our  fisher- 
men in  our  markets.  Two  dollars  a  ton  i'cciise  duty  upon  vessels  for  the  sea- 
eon  is  about  20  cents  a  barrel  upon  an  average  catch — whilst  our  tariff  imposes 
a  duty  upon  Canadian-caught  fish  of  $2  a  barrel.  And  this,  it  must  be  borne 
in  mind,  is  the  protection  given  in  our  markets  to  our  fishermen  upon  fish — 
mackerel — which  is  caught  almost  wholly  in  Canadian  waters,  by  our  people, 
in  consequence  of  the  granting  of  licenses  to  them  by  the  Canadian  govern- 
ment. 1  am  not  seeking  to  maintain  any  doubtful  theory,  but  simply  to  state 
indisputable  facts.  And  I  therefore  have  no  hesitation  in  declaring  that  I  can- 
not understand  how,  under  the  facts  of  the  case,  the  Canadian  government  could 
have  refused  to  increase  the  license,  in  view  of  the  starving  condition  of  their 
people  engaged  in  this  avocation,  and  in  the  face  of  the  heavy  duty  our  tariff 
imposes  upon  the  product,  if  brought  to  our  markets  in  their  vessels.  We  obtain 
the  mackerel  in  the  shallow  waters  washing  the  Canadian  shores,  and  inside  of 
the  three-mile  line,  by  virtue  of  a  license  from  the  Canadian  government.  The 
catcli  of  this  description  of  fish  outside  of  those  limits  is  inconsiderable.  The 
r  duty  of  $2  a  barrel  cannot  be  sustained  upon  any  theory  of  a  protection  to  our 
fisheries ;  it  is  simply  a  tax  for  the  benefit  of  the  American  fishermen,  and  to  the 
detriment  of  the  Canadian  fishermen,  who  in  point  of  fact  OWN  the  fisheries. 

There  is  also  another  view  of  the  subject  worthy  of  consideration.  There 
is  reason  to  believe — indeed  the  statement  remains  uncontradicted — that  the 
heavy  duty  of  two  dollars  a  barrel  under  our  tariff  has  been  of  little  advantage  to 
what  may  be  termed  "  legitimate"  American  fishermen,  i.  e.  persons  who  actu- 
ally catch  the  fish.  It  is  stated  as  a  fact  that  the  greater  portion  of  the  mack- 
erel brought  into  our  markets  in  American  vessels,  and  which  of  course  is 
entered  free  of  duty,  is  not  caught  by  our  fishermen,  but  is  purchased  from  Cana- 
dian fishermen  at  a  reduced  price  and  transferred  to  American  vessels,  thus 
giving  all  the  advantage  of  the  two-dollar  duty  to  smugglers,  and  holding  out 
a  direct  incentive  to  fraud.  It  is  unquestionably  more,  profitable  to  purchase 
the  fish  in  a  surreptitious  manner  and  avoid  all  risk  of  catching  them  ;  but  it 
will  hardly  be  contended,  if  the  existing  duty  is  thus  taken  advantage  of,  that 
it  fulfils  either  a  bonelicial  or  a  moral  purpose.  " ' " 

It  would  extend  this  paper  to  unreasonable  limits  t6  entef  into  a  discussion 
of  the  very  grave  issues  involved  in  the  fishery  disputes  previous  to  the  con- 


ny  belief 
tated  by 
ingement 
United 
beralized. 
tion)  last 

and  the 
1  from  our 
>y  Ameri- 
oasts,  and 
ise  issued 
avails  now 

forth  the  . 
e  country, 
de  to  the 
snse  to  $2 
jlieve  that 
•ged  upon 
Canadiaa 
imstances. 
t  $2  a  ton 
3ur  fisher- 
)r  the  sea- 
flf  imposes 
:  be  borne 
pon  fish^ 
ur  people, 
in  govern- 
[y  to  state 
that  I  can- 
ment  could 
on  of  their 
r  our  tariff 
We  obtain 
d  inside  of 
aent.  The 
able.  The 
jtion  to  our 
,  and  to  the 

FISHBRIBS. 

111.  There 
— that  the 
[vantage  to 
who  actu- 
the  mack- 
f  course  is 
Tom  Oana- 
Bssels,  thus 
loiding  out 
o  purchase 
em  ;  but  it 
age  of,  that 

discussion 
to  the  con- 


TRADE   WITH   THE   BRITISH   PROVINCES. 


if 


Vftntion  of  1854.     They  will  be  found  in  the  executive  documents  of  the  period, 

and  set  forth  at  length  and  with  great  indui>try  in  the  Hon.  Lorenzo  Sabine's 

report  (Executive  Documents  first  session  thirty-second  Congress,  part  2  )     As 

Mr.  Sumner  remarked  in  the  Senate,  in  1864 — 

The  fisheries  have  been  a  great  source  of  anxiety  throughout  our  history,  even  from  the 
bogiuniug,  anJ  for  scve.al  years  previous  to  the  reciprocity  treaty  they  have  been  the  occa- 
sion of  mutual  irritation,  verging  at  times  on  positive  outbreak.  The  treaty  was  followed 
by  entire  tranquillity,  which  has  not  been  for  a  moment  disturbed.  This  is  a  plain  advau- 
tage,  which  cannot  be  denied. 

The  following  is  the  number  of  licenses  issued  to  American  fishing  craft 
since  the  termination  of  the  treaty,  together  with  the  sums  paid  : 

■r-'i-^.-    .■  •  ,■  :;     ■•;...;..,.'       I  1866.         '.   '  '  ;■■  ••■ 

Licenses  issued  by  Canada,  10  vessels,  paying $296 

Licenses  issued  by  New  Brunswick,  1  vessel,  paying 13 

Licenses  issued  by  Nova  ij  cotia,  354  vessels,  paying 9,  368 

Licenses  issued  by  Prince  Edward  Island,  89  vessels,  paying 3,  389 

45  vessels 13,  016 

m..       -       ^    ■    -■■— ^ 

1867. 

By  Canada None. 

By  New  Brunswick No  return. 

By  Nova  Scotia,  269 $13,  929 

By  Prince  Edward  Island,  (estimated,)  100 3,  000 

■    "        369  vessels 16,929 

The  tonnage  of  vessels  was  in  1 866 26,  033 

,  ,  ,      t  ,t      ,  ,.     ,  in  1867,  (estimated) 19,000 

Although  the  license  fees  have  generally  been  collected  at  the  mouth  of  the 
gut  of  Canso,  Nova  Scotia,  because  most  convenient,  yet  the  best  fishing  grounds 
are  in  the  waters  of  the  province  of  Quebec,  (the  bliy  of  Oholeurs,  &c.) 

The  Canadian  Year  Book  for  1866  gives  the  following  statement  descriptive  of 
these  fisheries. 

The  most  valuable  sea  fisheries  in  the  Atlantic  are  close  by  the  shores  of  the  Dominion, 
vir...  those  on  the  Banks  of  Newfoundland,  the  St  George's  Banks  in  the  Gulf  of  St.  Law- 
rence, and  the  Bay  of  Fundy.  It  is  known  that  there  is  no  mackerel  left  on  the  shores  of 
the  United  States,  while  the  cod,  the  herring,  and  other  valuable  fish  in  coamier'je  never  go 
south  of  the  cold  waters  which  surround  our  coasts.  All  the  maritime  nations  of  the  wond 
have  consequently  endeavored  to  secure  rights  of  fishery  in  our  waters,  endeavors  often  sup- 
ported by  armed  forces  and  resulting  in  sanguinary  wars. 

The  United  States'  rights  are  (since  the  repeal  of  the  reciprocity  treaty)  defined  by  the 
convention  of  1818,  which  gives  them  the  right  of  fishing  ou  the  coasts  of  Newfoundland, 
Labrador-  and  the  Magdalen  Islands,  but  expressly  precludes  them  from  taking  or  curing 
fish  within  three  miles  of  the  coasts,  bays,  and  harbors  of  the  other  provinces. 

During  the  existence  of  the  reciprocity  treaty,  this  three-mile  limitation  was  abandoned, 
in  cohsiaeration  of  the  right  of  free  entry  for  our  products  into  United  States  markets. 
It  revived  with  the  repeal  of  the  treaty,  but,  pending  another  adjustment  of  the  matter,  the 
imperial  and  colonial  governments  have  agreed  to  allow  American  vessels  to  fish  within 
these  limits  on  payment  of  a  license.  There  have  often  been  between  400  and  500  United 
States  fishing  craft  in  the  Gulf  of  St.  Lawrence  alone,  with  a  tonnage  of  over  30,000, 
;    manned  by  over  6,000  men,  taking  fish  to  the  value  of  over  $1,000,000. 

It  is  certainly  to  be  hoped  that  Congress  will  at  once  take  such  action  as  will 
I   relieve  our  fishermen  from  license  dues,  and  at  the  same  time  avoid  a  renewa'i 
I   of  those  difficulties,  the  former  settlement  of  which  was  regarded  by  Mr.  Web- 
ster and  Mr.  Marcy  as  not  the  least  important  feature  of  the  treaty. 


14 


TRADE   WITH   THE   BRITISH   PROVINCES. 


TERMINATION  OF  THE  RECIPROCITY  TREATY. 


^ffS 


•  The  principal  reitson  for  tlie  termination  of  the  reciprocity  treaty  was  not  so 
much  a  consideration  of  inequality  in  its  provisions — for  these  might  have  been 
amended  without  j^oinj^  to  the  extent  of  abrogating  the  convention — as  the  fact 
that  the  rebellion  had  forced  upon  us  a  condition  of  things  whicli  did  not  exist 
when  the  treaty  was  made,  and  which  rendered  its  continuance  an  embarrasHment 
in  the  arrangement  of  our  complex  tariff  system.  As  stated  by  yon  in  your 
report  to  Congress  in  1865,  ••  the  people  of  the  United  States  could  not  consent 
to  be  taxed  as  producers  while  tho.se  outside  of  our  boundaries,  exempt  from  our 
burdens,  shall  ha  permitted,  as  competitors,  to  have  free  access  to  our  markets  ;" 
hence  it  was  desirable  to  aboli:«h  a  treaty,  which,  by  the  course  of  events,  had 
come  practically  to  discriminate  against  our  own  citizens.  The  immense  public 
debt  ol  the  United  States  worked  changes  requiring  new  arrangements  and  adap- 
tations, and  these  requirements  could  only  be  reached,  so  far  as  the  British  North 
American  provinces  wore  concerned,  by  the  termination  of  a  convention  which 
was  based  upon  a  wholly  dissimilar  state  of  facts.  The  establishment  of  a 
system  of  internal  revenue  taxation  in  the  United  States  mu^t  be  met  by  the 
imposition  of  duties  upon  produce  crossing  cur  borders.  Properly  levied,  and 
calculated  solely  with  a  view  of  beir;g  equivalent  in  proportion  to  the  internal 
revenue  tax,  these  duties  would  really  be  a  continuation  oHhe.  principle  of  equality 
in  the  exchange  of  natural  productions  between  the  United  States  and  Canada, 
which  lay  at  the  foundation  of  the  treaty  of  1854. 

So  reasonable  was  this  argument  felt  to  be,  that  the  representatives  of  the  several 
provinces  have  placed  on  record  their  acquiescence  in  its  justice.  A  delegation, 
comprising  members  of  the  governments  of  the  then  provinces  of  Canada,  New 
Brunswick,  and  Nova  Scotia,  visited  Washington,  and,  on  the  2d  of  February, 
1866,  submitted  the  following  "memorandum,"  acknowledging  the  changed 
condition  of  the  country  the  propriety  of  establishing  duties  on  articles  here- 
tofore embraced  in  the  free  list  of  the  reciprocity  treaty,  equivalent  to  the  internal 
taxation  existing  in  the  United  States,  and  general  propositions  for  the  rearrange- 
ment of  trade  relations  between  this  country  and  the  provinces  they  represented  : 

/       .  .  ,'  MEMORANDUM.        '.'T.-.^,^.    .'..[.'.".    !'"    '     "■•■>■,'    ,  .'. 

The  trade  between  the  United  States  and  the  British  provinces  should,  It  is  believed,  under 
ordinary  circumstances,  be  free  in  reference  to  theit  natural  productions,  but  as  internal 
taxes  exceptionally  exist  in  the  United  States,  it  is  now  proposed  that  the  articles  embraced 
in  the  free  list  of  the  reciprocity  treaty  should  continue  to  be  exchanged,  subject  only  to  such 
duties  as  may  be  equivalent  to  that  intcruat  taxation.  It  is  suggested  that  buth  parties  may 
add  certain  articles  to  those  now  in  the  said  list. 

With  reference  to  the  fisheries  and  the  navigation  of  the  internal  waters  of  the  continent, 
the  British  provinces  are  willing  that  the  existing  regulations  should  continue  in  effect ;  but 
Canada  is  ready  to  enter  into  arrangements  with  the  view  of  improving  the  means  of  access 
to  the  ocean,  provided  the  assurance  be  given  that  the  trade  of  the  western  States  will  not  be 
diverted  from  its  natural  channel  by  legislation.  And  if  the  United  States  are  not  prepared 
at  present  to  consider  the  general  opening  of  their  coasting  trade,  it  would  appear  desirable 
that,  as  regards  the  internal  waters  of  the  continent,  no  distinction  should  be  m&de  between 
the  vessels  of  the  two  countries. 

If  the  foregoing  points  be  satisfactorily  arranged,  Canada  is  willing  to  adjust  her  excise 
duties  upon  spirits,  beer,  and  tobacco,  upon  the  best  revenue  standard  which  may  be  mutually 
adopted  after  full  consideration  of  the  subject ;  and  if  it  be  desired  to  treat  any  other  articles 
in  the  same  way,  the  disposition  of  the  Canadian  government  is  to  give  every  facility  in  their 
power  to  prevent  illicit  trade. 

Canada  is  also  prepared  to  make  her  patent  lawf>  similar  to  those  of  the  United  States. 

It  is  not  necessary  to  allude  to  the  reasons  which  led  to  the  failure  of  any 
legislative  arrangements  at  that  time.  It  is  sufficient  to  state,  that  the  matter 
rests  precisely  where  it  did  at  the  termination  of  the  treaty,  so  far  as  any  recip- 
rocal agreements  between  the  two  countries  are  concerned.  Since  then,  how- 
ever, a  change  has  taken  place  in  the  political  condition  of  the  provinces,  which 


i 


TRADE  WITH  THE   BRITISH   PROVINCES. 


16 


•i.i       .'<•,.     Tf^ 

was  not  so 
;  have  been 
-aa  the  fact 
d  not  exist 
larrasHment 
on  in  your 
not  consent 
pt  from  our 
mtirkets  ;" 
ivents,  had 
ense  public 
and  adap- 
itirth  North 
tion  which 
)ment  of  a 
met  by  the 
levied,  and 
lie  internal 
of  equality 
(id  Canada, 

the  several 
delegation, 
nada,  New 
February, 
8  changed 
licles  here- 
he  internal 
rearrange- 
presented : 


leved,  under 
as  internal 
3S  embraced 
)nly  to  sttch 
parties  may 

3  continent, 
effect;  but 
IS  of  access 
will  not  be 
lot  prepared 
ar  desirable 
de  between 

b  her  excise 
be  mutually 
ther  articles 
ility  in  their 

States. 

re  of  any 
he  matter 
iny  recip- 
len,  how- 
:e8,  which 


1^ 


7 


I 


are  now  confederated  under  the  name  of  Canada;  and  the  British  government 
has  given  the  Canadian  authorities  the  practical  control  of  all  subjecta  aH'ectiiig 
that  dominion  to  the  extent  of  directing  her  Britannic  Majesty's  minister  here 
to  act  in  concert  with  the  Canadian  government  in  all  matters  connected  with 
any  negotiations  in  relation  to  commerce  and  navigation  on  our  northern  fron- 
tier. This  will  greatly  simplify  any  arrangement  which  may  be  entered  into 
in  the  future;  as,  instead  of  being  forced  to  negotiate  practically  with  the  British 
government  and  four  h'gisUtures  with  separate  and  independent  governments,  as 
was  the  case  when  the  niciprocity  treaty  was  concluded  in  1854,  any  agreement 
can  now  be  made  directly  with  Canada.  The  treaty  of  1854  only  went  into 
effect  after  obtaining  the  consent  of  each  separate  province,  and  it  was  for  a  time 
a  matter  of  doubt  if  the  various  conflicting  interests  of  the  sevenil  provinces 
could  be  so  ai ranged  as  to  SHtisfy  them,  {vide  correspondence  on  the  subject 
between  Mr.  Marcy  and  Mr.  Crampton,  1854  ) 

•  It  may  be  remarked  th'*,  the  commeice  between  the  United  States  and  Canada 
increat-ed,  since  1852,  in  a  striking  manner.  Thus,  in  1852,  the  total  trade 
between  the  United  States  and  Canada  amounted  to  but  $16,013,848,  whilst 
the  total  returns  for  1867  amounted  to  852,978,224.  How  far  this  increase  is 
due  to  the  growth  of  population  and  the  improved  means  of  communication,  and 
how  much  to  the  fact  of  the  establishment  of  the  reciprocity  treaty,  might 
measurably  be  estimated  by  looking  at  the  census  returns,  railroads,  &c.,  but 
which  would  extend  this  report  beyond  reasonable  limits.  For  the  purposes  of 
the  occasion,  it  can  safely  be  assumed,  at  all  events,  that  the  treaty  was  not  a 
drawback  to  the  g.owth  of  the  trade;  as  the  returns  from  no  other  country 
with  which  we  have  commercial  relations  show  anything  like  as  rapid  a  growth 
as  that  with  the  British  provinces  within  the  last  decade. 

An  analysis  of  the  trade  between  the  United  States  and  the  British  provinces 
during  the  continuance  of  the  reciprocity  treaty,  proves  that  a  valuable  portion 
of  it  consisted  in  the  interchange  of  articles  of  a  similar  character  at  different 
points ;  at  one  point  showing  imports  of  certain  articles  into  the  United  States 
from  one  portion  of  the  provinces,  whilst  at  another  point  the  United  States 
exported  similar  articles  to  other  sections  of  the  provinces.  This  was  illustrated 
by  the  honorable  Mr.  Howland,  of  Canada,  in  a  conversation  with  the  Commit- 
tee of  Ways  and  Means  of  the  House  of  Kepresentatives  in  1866,  when  he  said, 
"  The  great  point  for  us  to  consider  is,  that  from  our  relative  geographical  posi- 
tion, the  interests  of  the  two  countries  require  that  their  commodities  should  be 
interchanged  with  the  greatest  freedom  possible.  Thus,  our  fisheries  are  at  one 
end  of  the  province,  and  we  scarcely  ever  see  their  products ;  we  buy  the  fish 
we  want  from  you,  and  send  ours  somewhere  else."  And  it  may  also  be  added, 
that  whilst  Nova  Scotia  sold  a  certain  amount  of  coal  to  the  States  contiguous 
to  her,  yet  nearly  all  the  coal  conimmed  in  western  Canada  came  from  Ohio. 
These  currents  of  trade,  when  corrr  ctly  understood,  show  that  that  description 
of  commercial  traffic  is  very  far  removed  from  any  question  of  competition  with 
the  products  of  either  country.  High  tariffs  on  each  side  may  exclude  the 
coal  and  fish  of  Nova  Scotia  from  the  American  markets ;  but,  on  the  other  hand, 
they  will  equally  exclude  American  fish  and  American  coal  from  Canada.  The 
value  of  these  at  tides  exported  to  Canada  from  the  United  States,  and  vice  versa, 
will  be  seen  in  the  tables  given  in  this  report. 


t  '(>  ifoi  I  ■  j'l").;;^ 


h  fHJ  t 


There  is,  however,  a  very  important  and  valuable  commerce  which  natnrally 
grows  out  of  a  liberalization  of  trade  with  Canada,  and  inducing  the  Canadians 
to  sell  their  products  in  our  markets,  and  enabling  us  to  become  their  factors  in 
the  export  of  this  produce  to  the  markets  of  the  world.  It  cannot  be  given  in 
statistical  tables,  but,  nevertheless,  no  one  will  deny  its  existence.  I  allude  to 
the  purchases  naturally  made  in  our  markets,  from  the  fact  that  their  products 
are  sold  to  us,  although  we  are  in  reality  only  the  agents  of  the  European  consum- 
ers, who  are  the  ultimate  purchasers.  Other  things  being  equal,  the  seller  expends 


16 


TRADE    WITH   THE   BRITISH   PROVINCES. 


his  money  where  lie  gets  it,  in  supplying  hi.<)  wants.  As  the  factors  of  the  Cana- 
dian farmers,  under  a  liberal  system  of  commercial  intercourse,  we  are  the  medium 
through  which  he  receives  the  money  for  his  products,  and  he  purchases  what 
he  requires  of  our  wares  and  merchandise  as  a  matter  of  convenience  and  of 
course.  If,  on  the  other  hand,  we  exclude  him  from  our  markets — if  he  is  com- 
pelled by  heavy  duties  on  our  frontier  to  cross  the  Atlantic,  and  compete  with 
us  directly  in  tlie  markets  of  Europe,  who  can  contend  that  he  would  not  there 
also  purchase  his  supplies  ? 

CONCLUSION. 

The  conclusions  which  are  fairly  deducible  from  the  facts  and  figures  here- 
with presented  are,  that  a  wise  policy  in  behalf  of  the  interests  of  our  own  citi- 
zens requires  that  the  existing  itate  of  things,  consequent  upon  the  abrogation 
of  the  reciprocity  treaty,  should  not  be  continued.  Too  little  attention  has 
been  directed  to  the  trade  between  the  United  States  and  the  people  lying  for 
hundreds  of  miles  along  our  northern  frontier,  speaking  the  same  language  and 
bprung  from  the  same  ancestry.  I  do  not  allude  to  our  common  origin  in  any 
spirit  of  sentimentality,  because  such  considerations  are  absurd  as  between 
nations,  but  to  show  that  commercial  intercourse  with  such  a  people,  intelli- 
gent, industrious,  and  enterprising,  must  be  of  value  to  us.  In  point  of  fact, 
the  commerce  already  existing  between  the  United  States  and  Canada  is  exten- 
sive and  important — ranking  in  consequence  third  in  the  list  of  countries  with 
which  we  hold  trade  relations,  as  will  be  seen  by  the  following  table,  for  which 
I  am  indebted  to  the  director  of  the  Bureau  of  Statistics  : 


1 
I 
1 
< 

t 
t 

c 
a 
i: 


n 

e' 


Table  exhibiting  the  trade  of  the  United  States  with  the  following  countries 
during  the  fiacal  years  ending  June  30,  1860  and  1867,  respectively,  (in 
millions  of  dollars  and  tenths,  specie.) 


Countrie*.               "* 

Domestic    ex- 
portd. 

Total  imports. 

Re-cxporta. 

Net  iraportg. 

1860. 

1867. 

1860. 

1869. 

1860. 

1867. 

1860. 

1867. 

1.  Greftt  Britain 

196.2 
59.0 
18.6 
99.3 

185. 0 
44.2 
15.6 
99.6 

138.5 
43.2 
23.8 

156,6 

178.9 
31.2 
33.3 

168.8 

6.0 

3.1 

4.0 

13.8 

6.6 
1.8 
3.7 
8.6 

132.5 
40.1 
19.8 

142.8 

172.3 

2.   PrRtict*  .-.--. 

26.4 

3.   Britinli  North  American  provinces . 
All  otlier  couutries 

29.  6 
160.2 

Total 

373. 1  1    3.14. 4 

363.1        412.2 

26.9 

20.7 

33.'>.  2 

391.6 

M.  B. — The  countrieH  are  named  in  their  order  of  consequence  among  all  countries  with  which  we  trade. 

ALEX.  DELMAR,  Director. 
Bureau  or  Statistics, 

Treaeury  Department  U.  S,  A.,  February  19, 1868. 

So  far  as  the  official  facts  can  be  relied  upon — and  they  have  been  collected 
with  a  view  solely  to  ascertain  the  truth  and  not  to  sustain  any  preconcerted 
theory — there  can  be  no  question,  first,  that  the  duty  imposed  upon  pine  lumber 
has  fallen  upon  the  American  purchaser;  secondly,  that  the  effect  of  the  impo- 
sition of  an  unreasonably  high  duty  lipon  other  products  must  be  in  the  end  to 
jforce  the  Canadian  producer  to  seek  the  European  markets  through  other  and 
\^heaper  channels.  The  market  for  the  surplus  produce  of  this  continent  is  in 
Europe.  The  price  is  mainly  regulated  by  the  European  demand ;  and  all  the 
advantage  we  can  expect  to  derive  from  the  Canadian  export  of  these  articles 
must  be  obtained  from  handling  them — by  being  the  merchant  of  the  Canadian 
fanners.  They  do  not  enter  into  competition  with  American  products  of  a 
similar  character  to  any  extent  on  this  side  of  the  Atlantic.    The  competitioa 


